Housing Initiatives

Home Rehabilitation Program
Grand Traverse County has been awarded funding from the Michigan State Housing Development Authority to administer an affordable home repair loan program. The Grand Traverse County Land Bank Authority oversees the program.

Requirements
Applicants must be homeowners that are principal residents in single-family homes within Grand Traverse County. The household gross annual incomes must be at or below 80% of the Area Median Income. (As an example, a family of 2 would be eligible if their combined income is less than $40,150.)

All joint owners of a property must agree to sign a future advance mortgage for the program. Owners and their spouses that are living in the household must sign the note. Ideally, a borrower will have enough equity in their home to sustain the program loan. Any exceptions will be determined by the Grand Traverse County Land Bank Authority (LBA).

Applicants must own their house debt-free, or be purchasing it with a mortgage or recorded Land Contract. If there is a Land Contract, the holder of the contract must sign off on the loan. Owners of manufactured homes must have title to the land and the home must be permanently affixed. Manufactured homes must have been built after 1995.

Depending upon the household income, borrowers may have to make small, low interest installment payments, however, if the household income is below 60% of the area median income, the loan will be 0% interest and there will be no monthly payments. The balance is due when the owners no longer reside in the home or in 50 years.

Applicants generally must be current with their mortgage, property taxes and property insurance although there are circumstances that may be taken into consideration.

Cost of Work
The loan amount is determined by the cost of work that is necessary to improve the property (including non-agricultural outbuildings) to meet federal Uniform Physical Condition Standards (UPCS) including lead based paint hazard reduction. The minimum loan is $1,000; loans often exceed $10,000. The maximum project cost is $40,000 including inspections and administrative costs. The program can be used in partnership with other agency's programs.

The work must entail items that make the property safer, more livable, or increase energy efficiency. This is a repair program, not a remodeling program.

Homeowners are not allowed to act as the general contractor or to perform the repair work. The Housing Coordinator facilitates the bidding process and the construction management. The process generally takes several months.